GamEPlan

Industry Selected Elantra foods

Presented By

Game of Queens - KJ SIMSR

Sreya Mukherjee
Yashashree Kulkarni

S
 Technology Business Vendor
Problem Statement Recommendation
Solution Plan Selection

Problem Identification & Solution

Company Profile Increased
Overhead
Increased Y-o-Y revenue Cost
Elentra Group , a US- based conglomarate Low profits as expense is
with diversified business in 4 sectors : eating up the revenue Delayed
Chemicals, Pharma, Consumer goods, delivery
Financial Services Contributes 54% to Return
89% overall revenue Handling

Case Analysis
Expense is about 89% of Inefficient
Groups revenue up by 16% yet the food SCM &
and insurance business are not performing its revenue. Increased
well Expenses Vendor
13% Revenue increased by 12%
Expense increased by 13%
Selection
With the launch of 3 new cereals Tasty
Pasta, Choco Cereal and Meat Nuggets and a In APAC,
online store Elentra Mart, Elentra foods New product contributes Lack of
register marginal increase in gross profit : 18.8% while its overall Technical
Profit increased by only 3% 105% cost to revenue is 105% Innovation
Major Pain Points : Increased auditing cost For rest of the region is
for new supplier, product recall in APAC due 91% for NA and 81% for
customer
to quality issue and brand image turnishing EMEA.
complain
handling
For % calc: check appendix
 Problem Technology Business Vendor
Recommendation
Statement Solution Plan Selection

Technology Used IoT Block chain

How will this help Supply Chain?

Efficient Tracking of Orders and Assets

Ensure
Increased Security & Transparency Food
Feedback
:Chatbots Reduce Spoilage and Waste Safety &
for
Elentra Leads to
Marts & Ensure all testing document are up to date and Cost
Real time information storage in secured block IoT
devices at sharable Savings
Business Case : IBM+ Walmart + Tsinghua University
Retail Better manage product shelf life & Real Efficient
Risks Associated with time Feedback from customer SCM
What can be stored in blocks for Cut down logistic cost significantly & faster
better Management? the Proposed Solution delivery
Fuels predictive analysis for demand forecast
Firm Factory &
Batch How it may impact current situation?
Origination Processing Initial Capital investment is Significant
Number
details Data high reduction in
Implementation challenges Capital intensive delivery time
Storage set up cost would
Expiry Shipping Complex technology Efficient, transparent
Temper be mitigated in
Dates Details Compatibility with existing Reduced Manual Overhead and reliable source
ature long term
platform and ERP system tracking
Cost of taking data backup Significant manual
Intermediary Efficient Supply Chain & Food
from old system overhead cost
Details
Safety Ensure reduction
 Problem Technology Business Vendor
Recommendation
Statement Solution Cases Selection

Real time customer

S Implementation Roadmap for Recommendation

feedback handling + OTP
confirmation of order
reduces incorrect delivery
Order
Supplier Order Preparation/ Transportation Shipment Arrival
Origin Manufacturer
Confirmation Picking

Elantra Food Country DC1

Retailer + Online Customer
Chat with
Supply Chain Mart
experts
Increase Central DC for
Robotics could be
product customer
used in packaging
life = compaints
system automation Country DC1
Resolve + OTP
Resolves complaint & stale system for
product
product returns due to Real time tracking status leads to faster delivery
order
confirmati
broken packaging and cost reduction on

Increase
IoT product
(Digitalisati life =
Resolve
on) GPS + Usage of Raw GPS + GPS +
Weight Check stale
GPS + Weight GPS+ Cold Storage RFID Tag+ Bar
productTemperature+ material/ Item Temperature+ Temperature+
Cold Storage+ Check Cold Storage+ sealed container+ Code
and quality + Cold Storage+
Sealed Container Performance Sealed Container RFID
Sealed Container

Block Chain

Industry Smart Certified Certification Certified Certified Smart Ledger

acknowledged Smart Fund Transfer 3PL Contract/ Record
Contract/ 3PL/ of Goods/ 3PL
certification Contract/ Ledger
Ledger DQMP Work Ethics
Ledger
Certified vendor &
Aids efficient tracking distributor details
saves manual
overhead of audit
 Problem Technology Business Vendor
Recommendation
Statement Solution Plan Selection

Vendors on boarded for raw material supply needs to fulfil S Vendor Selection Process
qualification criteria and qualify companys certified vendor criteria

Vendors certification and further

Vendor Qualification
document would be updated in the block
chain database
Vendor Education
Vendors unable to comply with Elantra
Certified Standard at any point of
Contract, would be terminated
Trial Deliveries
S Criteria for Vendor Qualification
Quality Cost
Sample Inspection
Certified ( Competitiven
industry ess
standard)
Employee
Past History
Capacity [
Turnover
Team Visit
Self Certification &
Size,
Financial,
R&D Surprise Visit
Capability
Profitability] Employee
Questionnair
Training
e
Procedure
 Problem Technology Business Vendor
Recommendation
Statement Solution Plan Selection

Certified
GPS + RFID Vendor
Selection

Cold Storage +
Sealed Prescriptive
Container Analytics
packaging
Integrated ERP
Block Chain
IoT tracking
Database

IoT Block chain Solution Lean & Efficient SCM

[1] & [2] : check appendix

Appendix
Elentra Foods Region Wise financial Results New Product Revenue
NA EMEA APAC
Gross Revenue 37320 12100 4309 NA EMEA APAC
EBITDA 3349 2270 -220 Choco Cereal 605 335 145
Y-o-Y change in EBITDA 5% 3% -30% Meat Nugget 925 665
Tasty Pasta 180 365
Cost 33971 9830 4529 1530 700 810
% 0.91 0.81 1.05
Assumptions
1. Initial time period for order processing is 14 days
Revenue NA EMEA APAC With the block chain database and GPS, every step has real time tracking
Contribution (%) (%) (%) and each DC level in the line will know delivery current status and hence
Overall 4.10 5.79 18.8 the approval and signage required has already been updated in block chain
DB, each DC needs 2 days lesser time to dispatch:
CC 1.62 2.77 3.37 Incremental delivery time saved = (14-10)/14 = 57%
2. If there are 80 new vendor, raw material is 5 time so total quality
MN 2.48 - 15.43
checking = 400 times
Now with vendor certified block chain IoT, only surprise audit checking
TP 0.48 3.02 -
once in a month is sufficient so total 80 times a month.
Incremental saving in cost = (400-80)/400*100=80%
S Appendix

Foods Insurance Pharma Chemical Total % share of food on total product line Last Year Food
Gross Revenue 53739 19800 17933 8290 99762 54% 47981.25 Revenue
5241.7475
EBITDA 5399 4205 6133 1162 16899 32% 73 EBITDA
Y-o-Y % change in EBITDA 3.00% -5% 14% 23%

COGS
Depreciation 48340 15595 11800 7128 82863 42739.50 Expense
Salaries % of
Rents and utilities 0.890754 revenue
SGA
Cost as % of revenue 89.95% 78.76% 65.80% 85.98% 58.34%
Increase in Cost than last year
13%